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Capital and New Issue Markets

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Quantitative Corporate Finance

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Abstract

The essential advantage of the corporation over other forms of business organization lies in its ability to bring together large amounts of capital. This is especially true of those corporations, which are publicly held or widely held 1 The small family-held, closely held, or closed corporation has basically the same financial sources as other business forms, i.e. trade credit, the banks, and the resources of family and friends willing to invest in the business. A widely held corporation, although it will also finance through trade creditors and banks, has the additional ability to tap the flow of investment funds available in the security markets, the market for stocks and bonds.

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Authors and Affiliations

  1. McKinley Capital Management, Inc., 3301 C. Street, Anchorage, Alaska, 99503, USA

    John B. Guerard Jr

  2. Department of Economics, Lehigh University, 621 Taylor Street, Bethlehem, PA, 18015, USA

    Eli Schwartz

Authors
  1. John B. Guerard Jr
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  2. Eli Schwartz
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© 2007 Springer Science+Business Media, LLC

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Guerard, J.B., Schwartz, E. (2007). Capital and New Issue Markets. In: Quantitative Corporate Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-34465-2_7

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